[F148Y.Consequences of a replacement valuationU.K.
(1)Where the independent valuation carried out under section 48X(1) produces a higher valuation of the net asset value of the bank than a provisional valuation carried out under section 6E(3), the Bank of England may—
(a)modify any liability of the bank which has been reduced, deferred or cancelled by a mandatory reduction instrument or a resolution instrument so as to increase or reinstate that liability; or
(b)instruct a resolution company to pay additional consideration—
(i)to the bank for any property, rights or liabilities transferred to the resolution company by a property transfer instrument, or
(ii)to the previous holders of securities issued by the bank for any securities transferred to the resolution company by a share transfer instrument.
(2)The power in subsection (1)(a)—
(a)may not be exercised so as to increase the value of the liability beyond the value it would have had if the resolution instrument which reduced, cancelled or deferred it had not been made, and
(b)must be exercised by a mandatory reduction instrument or supplemental resolution instrument (whether or not that instrument contains any other provision authorised by this Part).]
Textual Amendments
F1Ss. 48X, 48Y and cross-heading inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 61